Carisma Therapeutics (US:CARM)2025-05-13 20:43Financial Performance - The company reported net losses of $9.3 million for the three months ended March 31, 2025, compared to $19.0 million for the same period in 2024[110]. - As of March 31, 2025, the company had $7.7 million in cash and cash equivalents and an accumulated deficit of $314.8 million[110]. - The company reported a pre-tax loss of $9.3 million for the three months ended March 31, 2025, compared to a pre-tax loss of $19.0 million in the same period of 2024[128]. - The company expects to incur significant expenses and operating losses while exploring strategic alternatives, with substantial doubt about its ability to continue as a going concern beyond the second half of 2025[149]. - Interest income from cash, cash equivalents, and marketable securities was $0.1 million for Q1 2025, down from $0.8 million in Q1 2024, indicating sensitivity to interest rate changes[166]. - Total contractual obligations amount to $2.584 million, with $1.757 million due within one year[158]. - Operating lease commitments total $1.925 million, with $1.098 million due within one year[158]. Research and Development - The company has not yet commercialized any products or generated revenue from product sales, relying primarily on collaboration revenues from Moderna, which included $2.0 million in milestone payments[118]. - The company plans to cease further development of its lead product candidates, CT-0508 and CT-0525, as part of a revised operating plan to conserve cash and refocus efforts[103]. - The company has paused research and development activities and does not expect to resume them without completing a strategic transaction or obtaining significant additional funding[111]. - Future research and development activities are currently on hold, pending the completion of a strategic transaction or obtaining significant additional funding[153]. - The company anticipates that resuming research and development activities will significantly increase expenses and future capital requirements[156]. - The company achieved pre-clinical proof of concept in its liver fibrosis program in Q2 2024, demonstrating the anti-fibrotic potential of engineered macrophages[106]. - The company may face challenges in scaling up manufacturing processes to support clinical trials for product candidates[157]. Strategic Alternatives - The company is exploring strategic alternatives, including potential asset sales or partnerships, but there is no assurance that these efforts will result in any transactions[105]. - The company plans to explore strategic alternatives, including potential asset sales or partnerships, but there is no guarantee that these efforts will result in successful transactions[150]. - The final research and development payment of $2.9 million from Moderna was received in January 2025, marking the end of additional research funding under the collaboration agreement[139]. - Moderna has nominated all 12 oncology research targets under their collaboration agreement, but the company will not receive further research funding from Moderna[118]. Expenses and Cost Management - Total operating expenses decreased to $13.1 million for the three months ended March 31, 2025, down from $22.9 million in the same period of 2024, primarily due to reduced research and development expenses[128]. - Research and development expenses were $9.2 million for the three months ended March 31, 2025, a decrease of $8.3 million from $17.5 million in the same period of 2024, attributed to a revised focus on operating plans[132]. - General and administrative expenses decreased to $3.9 million for the three months ended March 31, 2025, compared to $5.4 million in the same period of 2024, due to reductions in professional fees and personnel costs[135]. - General and administrative expenses are expected to decrease in 2025 due to the termination of non-essential employees as part of the wind-down process[123]. - The company incurred $3.4 million in costs during Q1 2025 related to a cash preservation plan, with an additional $0.4 million expected in Q2 2025 for workforce reduction benefits[162]. Market Risks and Economic Conditions - The company is exposed to market risks, primarily interest rate sensitivities, which could impact financial performance[166]. - Inflation has not materially affected the company's business or financial condition during Q1 2025[167]. - The company’s ability to establish strategic collaborations and licensing arrangements is critical for future revenue streams[155].